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Margin and markup calculator

See how much remains above your costs and understand the difference between margin and markup.

Your numbers

Example values are filled in. Change them to match your business.

Include labor, materials, and the other costs you want to cover.

The amount you charge, excluding tax collected for a tax authority.

Your calculation

Amount above entered costs

$77.14

Total entered cost
$180.00
Margin
30%
Markup
42.86%

All amounts are in USD. Sales tax is excluded. Results reflect only the costs you enter.

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One amount. Two different percentages.

Margin divides the amount above costs by your selling price. Markup divides that amount by your cost. Include every relevant cost to make the result useful. A sale below cost shows a loss; markup is undefined when cost is zero.

Margin = (price − cost) ÷ price × 100

Worked example

The same sale, two different percentages

Illustrative amounts in USD, before sales tax. These are not recommended rates or margins.

  1. $234 selling price − $180 total cost = $54 above cost.
  2. $54 ÷ $234 × 100 = a 23.08% margin.
  3. $54 ÷ $180 × 100 = a 30% markup.

Both percentages describe the same $54. Margin uses the selling price as its base; markup uses cost.

Common questions

Is a 30% markup the same as a 30% margin?

No. A 30% markup multiplies cost by 1.30. A 30% target margin divides cost by 0.70. On a $180 cost, those give $234 and about $257.14 respectively.

What happens if I sell below cost or enter zero cost?

A price below cost produces negative profit and margin. With zero cost and a positive price, margin is 100%, but markup is undefined because it would require dividing by zero.

Is the amount above costs my net profit?

Only if all relevant costs are included. This calculation cannot account for expenses you leave out. Enter the selling price before sales tax and keep the cost basis consistent.

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